SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
Quarterly report under Section 13 or 15(d) of
the Securities Exchange Act of 1934
For the quarterly period ended June 30, 2002
Commission File number 000-32201
Tasco International, Inc.
(Name of Small Business Issuer in its Charter)
44-457 San Rafael Ave. Unit #1, Palm Desert, CA 92260
(Address of Principal Executive Offices including Zip Code
(760) 773-9765
(Issuer's Telephone Number, Including Area Code)
Not Applicable
(Former Name, Former Address and Former Fiscal Year,
if changed since last report)
Check whether the issuer: (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days. Yes [X] No [ ]
There were 1,278,000 shares of Common stock outstanding as of June 30, 2002.
ITEM 1. FINANCIAL STATEMENTS
TASCO INTERNATIONAL, INC.
(A Development Stage Company)
Balance Sheets
--------------------------------------------------------------------------------
As of Year Ended
June 30, September 30,
2002 2001
-------- --------
ASSETS
CURRENT ASSETS
Cash $ 640 $ 660
-------- --------
TOTAL CURRENT ASSETS 640 660
-------- --------
TOTAL ASSETS $ 640 $ 660
======== ========
LIABILITIES & STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 220 $ 560
Note payable 3,277 --
-------- --------
TOTAL CURRENT LIABILITIES 3,497 560
-------- --------
TOTAL LIABILITIES 3,497 560
STOCKHOLDERS' EQUITY
Preferred stock, ($.0001 par value, 20,000,000
shares authorized; none issued and outstanding) -- --
Common stock, ($.0001 par value, 80,000,000
shares authorized; 1,278,000 shares issued
and outstanding) 128 128
Additional paid-in capital 11,662 11,662
Deficit accumulated during development stage (14,647) (11,690)
-------- --------
TOTAL STOCKHOLDERS' EQUITY (2,857) 100
-------- --------
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 640 $ 660
======== ========
See Notes to Financial Statements
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TASCO INTERNATIONAL, INC.
(A Development Stage Company)
Statements of Operations
--------------------------------------------------------------------------------
October 6, 1998
Nine Months Nine Months Three Months Three Months (inception)
Ended Ended Ended Ended through
June 30, June 30, June 30, June 30, June 30,
2002 2001 2002 2001 2002
---------- ----------- ---------- ---------- --------
REVENUES
Revenues $ 1,000 $ -- $ -- $ -- $ 1,000
---------- ----------- ---------- ---------- --------
TOTAL REVENUES 1,000 -- -- -- 1,000
GENERAL & ADMINISTRATIVE EXPENSES 3,957 10,773 1,293 1,482 15,647
---------- ----------- ---------- ---------- --------
TOTAL GENERAL & ADMINISTRATIVE EXPENSES 3,957 10,773 1,293 1,482 15,647
---------- ----------- ---------- ---------- --------
NET INCOME (LOSS) $ (2,957) (10,773) $ (1,293) $ (1,482) $(14,647)
========== =========== ========== ========== ========
BASIC EARNINGS (LOSS) PER SHARE $ (0.00) $ (0.01) $ (0.00) $ (0.00)
========== ========== ========== ==========
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING 1,278,000 1,278,000 1,278,000 1,278,000
========== ========== ========== ==========
See Notes to Financial Statements
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TASCO INTERNATIONAL, INC.
(A Development Stage Company)
Statement of Changes in Stockholders' Equity
From October 6, 1998 (inception) through June 30, 2002
--------------------------------------------------------------------------------
Deficit
Accumulated
Common Additional During
Common Stock Paid-in Development
Stock Amount Capital Stage Total
--------- --------- --------- --------- ---------
Stock issued for cash on October
6, 1998 @ $0.0001 per share 100,000 $ 10 $ -- $ -- $ 10
Stock issued for cash on October
9, 1998 @ $0.01 per share 130,000 13 1,287 1,300
Stock issued for cash on October
12, 1998 @ $0.01 per share 19,000 2 188 190
Stock issued for cash on April
1, 1999 @ $0.01 per share 29,000 3 287 290
Net loss, October 6, 1998 (inception)
through September 30, 1999 (295) (295)
--------- --------- --------- --------- ---------
BALANCE, SEPTEMBER 30, 1999 278,000 28 1,762 (295) 1,495
========= ========= ========= ========= =========
Stock issued for cash on October
19, 1999 @ $0.01 per share 1,000,000 100 9,900 10,000
Net loss, October 1, 1999 through
September 30, 2000 (367) (367)
--------- --------- --------- --------- ---------
BALANCE, SEPTEMBER 30, 2000 1,278,000 128 11,662 (662) 11,128
========= ========= ========= ========= =========
Net loss, October 1, 2000 through
September 30, 2001 (11,028) (11,028)
--------- --------- --------- --------- ---------
BALANCE, SEPTEMBER 30, 2001 1,278,000 128 11,662 (11,690) 100
========= ========= ========= ========= =========
Net loss, October 1, 2001 through
June 30, 2002 (2,957) (2,957)
--------- --------- --------- --------- ---------
BALANCE, JUNE 30, 2002 1,278,000 $ 128 $ 11,662 $ (14,647) $ (2,857)
========= ========= ========= ========= =========
See Notes to Financial Statements
4
TASCO INTERNATIONAL, INC.
(A Development Stage Company)
Statements of Cash Flows
--------------------------------------------------------------------------------
October 6, 1998
Nine Months Nine Months Three Months Three Months (inception)
Ended Ended Ended Ended through
June 30, June 30, June 30, June 30, June 30,
2002 2001 2002 2001 2002
---------- ----------- ---------- ---------- --------
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) $ (2,957) $(10,773) $ (1,293) $ (1,482) $(14,647)
Amortization -- -- -- -- 240
(Increase) decrease in organization costs -- -- -- -- (240)
Increase (decrease) in accounts payable (340) (15) 220 350 220
Increase (decrease) in notes payable 3,277 -- 113 -- 3,277
-------- -------- -------- -------- --------
NET CASH PROVIDED (USED) BY OPERATING
ACTIVITIES (20) (10,788) (960) (1,132) (11,150)
CASH FLOWS FROM INVESTING ACTIVITIES
NET CASH PROVIDED (USED) BY INVESTING
ACTIVITIES -- -- -- -- --
CASH FLOWS FROM FINANCING ACTIVITIES
Common stock -- -- -- -- 128
Additional paid-in capital -- -- -- -- 11,662
-------- -------- -------- -------- --------
NET CASH PROVIDED (USED) BY FINANCING
ACTIVITIES -- -- -- -- 11,790
-------- -------- -------- -------- --------
NET INCREASE (DECREASE) IN CASH (20) (10,788) (960) (1,132) 640
CASH AT BEGINNING OF PERIOD 660 11,493 1,600 1,838 --
-------- -------- -------- -------- --------
CASH AT END OF PERIOD $ 640 $ 705 $ 640 $ 705 $ 640
======== ======== ======== ======== ========
See Notes to Financial Statements
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TASCO INTERNATIONAL, INC.
(A Development Stage Company)
Notes to Financial Statements
As of June 30, 2002
NOTE 1. ORGANIZATION AND DESCRIPTION OF BUSINESS
The Company was organized October 6, 1998, under the laws of the State of
Delaware as Tasco International, Inc. The Company is engaged in the business of
offering virtual reality technology for CD-ROM, media and Internet
presentations. The Company has no operations and in accordance with SFAS #7, the
Company is considered a development stage company.
On October 6, 1998, the Company issued 100,000 shares of common stock for cash
at $0.0001 per share.
On October 9, 1998, the Company issued 130,000 shares of common stock for cash
at $0.01 per share.
On October 12, 1998, the Company issued 19,000 shares of common stock for cash
at $0.01 per share.
On April 1 1999, the Company issued 29,000 shares of common stock for cash at
$0.01 per share.
On October 19, 1999, the Company issued 1,000,000 shares of common stock for
cash at $0.01 per share.
As of June 30, 2002 the Company had 1,278,000 shares of its common stock issued
and outstanding.
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
a. BASIS OF ACCOUNTING
The financial statements have been prepared using the accrual basis of
accounting. Under the accrual basis of accounting, revenues are recorded as
earned and expenses are recorded at the time liabilities are incurred. The
Company has adopted a September 30, year-end.
b. USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
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TASCO INTERNATIONAL, INC.
(A Development Stage Company)
Notes to Financial Statements
As of June 30, 2002
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT.)
c. CASH EQUIVALENTS
The Company considers all highly liquid investments with a maturity of three
months or less when purchased to be cash equivalents.
d. INCOME TAXES
Income taxes are provided in accordance with Statement of Financial accounting
Standards No. 109 (SFAS 109), Accounting for Income Taxes. A deferred tax asset
or liability is recorded for all temporary differences between financial and tax
reporting and net operating loss carryforwards. Deferred tax expense (benefit)
results from the net change during the year of deferred tax assets and
liabilities.
Deferred tax assets are reduced by a valuation allowance when, in the opinion of
management, it is more likely than not that some portion of all of the deferred
tax assets will be realized. Deferred tax assets and liabilities are adjusted
for the effects of changes in tax laws and rates on the date of enactment.
e. BASIC EARNINGS PER SHARE
In February 1997, the FASB issued SFAS No. 128, "Earnings Per Share", which
specifies the computation, presentation and disclosure requirements for earnings
(loss) per share for entities with publicly held common stock. SFAS No. 128
supersedes the provisions of APB No. 15, and requires the presentation of basic
earnings (loss) per share and diluted earnings (loss) per share. The Company has
adopted the provisions of SFAS No. 128 effective October 6, 1998 (inception).
Basic net loss per share amounts is computed by dividing the net income by the
weighted average number of common shares outstanding. Diluted earnings per share
are the same as basic earnings per share due to the lack of dilutive items in
the Company.
NOTE 3. WARRANTS AND OPTIONS
There are no warrants or options outstanding to acquire any additional shares of
common or preferred stock.
NOTE 4. GOING CONCERN
The Company's financial statements are prepared using generally accepted
accounting principles applicable to a going concern, which contemplates the
realization of assets and liquidation of liabilities in the normal course of
business. However, the Company has no current source of revenue. Without
realization of additional capital, it would be unlikely for the Company to
continue as a going concern. It is management's plan to seek additional capital
through sale of its securities through private placements.
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NOTE 5. INCOME TAXES
As of June 30, 2002
-------------------
Deferred tax assets:
Net operating tax carryforwards $ 2,199
Other 0
-------
Gross deferred tax assets 2,199
Valuation allowance (2,199)
-------
Net deferred tax assets $ 0
=======
Realization of deferred tax assets is dependent upon sufficient future taxable
income during the period that deductible temporary differences and carryforwards
are expected to be available to reduce taxable income. As the achievement of
required future taxable income is uncertain, the Company recorded a valuation
allowance.
NOTE 6. SCHEDULE OF NET OPERATING LOSSES
1998 Net Operating Loss $ (295)
1999 Net Operating Loss (367)
2000 Net Operating Loss (11,028)
2001 Net Operating Loss (2nd. Qtr.) (2,967)
--------
Net Operating Loss $(14,657)
========
As of June 30, 2002, the Company has a net operating loss carryforward of
approximately $ 14,657, which will expire 20 years from the date the loss was
incurred.
NOTE 7. RELATED PARTY TRANSACTION
The Company's neither owns nor leases any real or personal property. A director
without charge provides office services. Such costs are immaterial to the
financial statements and, accordingly, have not been reflected therein. The
officers and directors of the Company are involved in other business activities
and may, in the future, become involved in other business opportunities. If a
specific business opportunity becomes available, such persons may face a
conflict in selecting between the Company and their other business interests.
The Company has not formulated a policy for the resolution of such conflicts.
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
CERTAIN FORWARD-LOOKING INFORMATION
Information provided in this Quarterly report on Form 10QSB may contain
forward-looking statements within the meaning of Section 21E or Securities
Exchange Act of 1934 that are not historical facts and information. These
statements represent the Company's expectations or beliefs, including, but no
limited to, statements concerning future and operating results, statements
concerning industry performance, the Company's operations, economic performance,
financial conditions, margins and growth in sales of the Company's products,
capital expenditures, financing needs, as well assumptions related to the
forgoing. For this purpose, any statements contained in this Quarterly Report
that are not statement of historical fact may be deemed to be forward-looking
statements. These forward-looking statements are based on current expectations
and involve various risks and uncertainties that could cause actual results and
outcomes for future periods to differ materially from any forward-looking
statement or views expressed herein. The Company's financial performance and the
forward-looking statements contained herein are further qualified by other risks
including those set forth from time to time in the documents filed by the
Company with the Securities and Exchange Commission, including the Company's
most recent Form 10SB.
CONDITIONS AND RESULTS OF OPERATIONS.
THREE MONTHS ENDED JUNE 30, 2002
Net sales were -0- for the quarter ending June 30, 2002 and -0- for the
same quarter ending 2001.
Operating Expenses were $1,293 for the quarter ended June 30, 2002 and
$1,482 for the same quarter in 2001.
The Company has generated minimum revenues from operating activities during
the quarter ending June 30, 2002. During the quarter ending June 30, 2002,
management has been in the design phase for a web site offering the Company's
services in visual content and other digital media to consumers and businesses.
The Company has also completed work toward preparing samples of 360-degree
images which it will be displaying on its web-site, along with still media,
video and animation for viewing on its proposed web site. The Company has
continued to contact various photographers and other visual content producers to
contract for the company for production of visual media. To date, no contractual
arrangements with any photographer or visual content producer have been made.
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The Company does not anticipate any material increase in operating expenses
until such time as additional capital can be raised and the Company proceeds
with the further development of its business plan. Management believes that the
Company must be successful in raising equity or debt financing sufficient to
meet its working capital requirements and to support the expenses associated
with developing its sales in media content production within the next several
months. To date, minimum sales have been made in media content production and
the Company has not been successful in raising equity or debt financing
sufficient to meet its working capital requirements. No assurance can be given
that the Company will have other financing available, if required; or if
available, will be available on terms and conditions satisfactory to management.
ANALYSIS OF FINANCIAL CONDITION
As of June 30, 2002, the Company had working capital of $640 and faces the
need for substantial additional working capital in the near future. The Company
will be required to seek sources of financing. No assurance can be given that
the Company will have financing available, if required, or if available, will be
available on terms and conditions satisfactory to management.
The financial statements of the Company were prepared for the quarter
ending June 30, 2002. The Company's ability to establish itself as a going
concern is dependent upon the Company obtaining sufficient financing to continue
its development activities. There is no assurance that the company will achieve
profitable operations in the future. The Company could be required to secure
additional financing to implement further development plans. There is no
assurance that such financing will be available to the Company, or if available,
will be available on terms and conditions satisfactory to management.
As part of the Company's plan to raise additional working capital, the
Company may make a limited number of offers and sales of its Common Shares to
qualified investors in transactions that are exempt from registration under the
1933 Act. Other offers and sales of Common Shares may be at prices per share
that are higher or lower than the price of the Common Shares in this
registration statement. There can be no assurance the Company will not make
other offers of its securities at different prices, when, in the Company's
discretion, such prices are deemed by the Company to be reasonable under the
circumstances.
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PART II
OTHER INFORMATION
ITEM 1. LEGAL PROCEEDING.
None
ITEM 2. CHANGES IN SECURITIES.
None
ITEM 3. DEFAULTS UPON SENIOR SECURITIES.
None
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
None
ITEM 5. OTHER INFORMATION.
None
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
None
(b) Reports on Form 8-K
A Form 8-K was filed dated June 27, 2002
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SIGNATURE
Pursuant to the requirements of Section 12 of the Securities Exchange Act
of 1934, the Company has duly caused this disclosure statement to be signed on
its behalf by the undersigned, thereunto duly authorized.
TASCO INTERNATIONAL, INC.
Date 08/13/02 /s/ Dal Grauer
--------------------------
Dal Grauer
President
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